Amwest Imaging Inc. (AMWI) Shares Drop as ex-Writers’ Group Investor Names AMWI Insiders New Defendants to Lawsuit
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    Stock Report for Amwest Imaging Inc. (AMWI)

    Amwest Imaging Inc. (AMWI) is a technology company whose primary business is providing relationship-building tools and processes that help any business cultivate profitable relationships with customers, all through Web based solutions. Its current portfolio consists of My Restaurant Web (www.myrestaurantweb.com), with additional Web sites in beta testing for launch in early 2012. 

    Share Statistics (09-Dec-11)  
    Symbol AMWI
    Current price $0.37  
    52wk Range: $0.23-$1.39  
    Avg Vol (3m): 62,011,400  
    Market Cap. 180.88M  
    Shares Outstanding 495.56M  

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of AMWI jumped as much as 100% to $0.52 Friday, reversing losses of the prior day when a press release named the Company as one of the additional defendants to private investor George Sharp’s lawsuit against Writers’ Group Film Corp. Inc. (Pink: WRIT).

    Sharp, a former investor of Writer’s Group Film, has filed a civil action for fraud, negligent misrepresentation, violation of California Corporations Code Section 25400, and violations of the California Business and Professions Codes 17200 (Unfair Business Practices) and 17500 (False Advertising) against Writers’ Group Film, its Front Row Networks subsidiary, and its current and former officers. He reportedly added several new defendants to his lawsuit after he examined Writers’ Group president and CEO John Diaz in a deposition in front of a court reporter on November 29, 2011.

    “As a result of my research and Mr. Diaz’s sworn testimony, I am now convinced that the newly added Defendants conspired to defraud the public by conducting what is commonly known as a Pump and Dump scheme. I believe that they executed a ruse in which Mr. Diaz was to receive financing and support from the Defendants for his projects, which were vended into Writers’ Group, and once the Defendants divested themselves of their shares, the financing and support stopped,” Sharp said in a statement.  “I believe that the Defendants used Mr. Diaz’s reputation and background to their advantage and installed him as a figurehead while dumping their shares onto the public.”

    On the same day, the Company made a press release saying it was wrongfully named in the lawsuit.

    “Mr. Sharp’s press release contains numerous misstatements of facts attributed directly to Mr. Sharp to include where the Company is located, the nature of the ownership of the Company, alleged relationships to others and a defamatory assertion that the Company is not successful, “AMWI said in its press release. “The Company is informed and believes that Mr. Sharp has filed similar civil actions against numerous other public companies alleging fraud, misrepresentation, violation of California Corporations Code and Business and Professions Code.”

    AMWI said it is examining its legal options which may be, but are not limited to, a lawsuit being filed with significant damages being sought. It intends to do everything possible to protect its shareholders from the potential damages caused as a result of this legal action.

    AMWI shares gained $0.11 to close Friday at $0.37.  Over the past 52 weeks, the stock has traded between $0.23 and $1.39. It is currently above its 50-day and 200-day moving averages, both set at $0.26.

    Source:

    http://finance.yahoo.com/news/Amwest-Wrongfully-Named-iw-2341104009.html?x=0

    http://finance.yahoo.com/news/Former-Writers-Group-pz-3822807364.html?x=0

    Financial Summary

    AMWI did not have any operating income from inception (April 7, 2010) through May 31, 2011. For the period from inception through the quarter ended May 31, 2011, it recognized a net loss of $44.23 K. Some general and administrative expenses during the year were accrued. Expenses for the year were comprised of costs mainly associated with legal, accounting and office.

    At May 31, 2011, the Company had no capital resources and will rely upon the issuance of common stock and additional capital contributions from shareholders to fund administrative expenses pending full implementation of the Company’s business model.

    Source: Reuters.com, SEC Filings.

    Comparative Analysis

    No direct competitor comparison.

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